The evolution of retail channels in China since 2000

Drawing from premier marketing reports and retailing literatures about China, this article analyzes the evolution of retail channels in China from 2000 to 2015. Under the punctuated equilibrium paradigm, we examine the interactions between retailers and consumers by using competitive and transaction cost analysis. We find that China’s retail channel evolution since 2000 has been driven by unique factors: (a) the government’s economic reform policies and the introduction of Internet technology; (b) behavioral differences based on an urban-rural dualism; and (c) the deep penetration of mobile devices and social media platforms. Based on this analysis, the article concludes with predictions for the future development of retail channels in China.